Methode Electronics (NYSE:MEI) Downgraded by Wall Street Zen to Hold

Key Points

• Wall Street Zen downgraded Methode Electronics from buy to hold, adding to a mixed analyst backdrop. The stock now carries an average rating of Reduce with a consensus price target of $19.33.
• Recent earnings were weaker than expected: Methode reported -$0.30 EPS, missing the consensus estimate, even though revenue came in at $298.1 million, above forecasts. The company also posted negative return on equity and net margin.
• Despite the caution, the stock has drawn institutional buying, with several large investors boosting or initiating positions. Institutional and hedge fund ownership remains high at 95.49% of the shares outstanding.

Methode Electronics (NYSE:MEI - Get Free Report) was downgraded by stock analysts at Wall Street Zen from a "buy" rating to a "hold" rating in a research note issued on Sunday.

Several other analysts have also recently commented on MEI. Barrington Research upgraded Methode Electronics from a "market perform" rating to an "outperform" rating and set a $25.00 target price on the stock in a report on Monday, June 29th. Zacks Research downgraded shares of Methode Electronics from a "hold" rating to a "strong sell" rating in a research report on Tuesday, June 30th. Weiss Ratings reissued a "sell (d-)" rating on shares of Methode Electronics in a report on Tuesday, April 21st. Sidoti restated a "neutral" rating and issued a $17.00 price objective on shares of Methode Electronics in a research report on Friday, June 26th. Finally, Robert W. Baird boosted their target price on shares of Methode Electronics from $8.50 to $16.00 and gave the stock a "neutral" rating in a research note on Friday, June 26th. One equities research analyst has rated the stock with a Buy rating, two have given a Hold rating and two have assigned a Sell rating to the company's stock. Based on data from MarketBeat, the company currently has an average rating of "Reduce" and a consensus price target of $19.33.

Methode Electronics Price Performance

Shares of NYSE:MEI traded up $0.10 during trading on Friday, reaching $15.75. The stock had a trading volume of 690,905 shares, compared to its average volume of 959,103. The stock has a market capitalization of $558.83 million, a PE ratio of -15.60 and a beta of 1.47. The company has a debt-to-equity ratio of 0.48, a current ratio of 2.37 and a quick ratio of 1.66. Methode Electronics has a 52 week low of $4.88 and a 52 week high of $20.38. The business's 50-day moving average price is $12.70 and its 200 day moving average price is $9.13.

Methode Electronics (NYSE:MEI - Get Free Report) last released its quarterly earnings results on Wednesday, June 24th. The electronics maker reported ($0.30) EPS for the quarter, missing analysts' consensus estimates of ($0.11) by ($0.19). Methode Electronics had a negative return on equity of 5.59% and a negative net margin of 3.50%.The business had revenue of $298.10 million for the quarter, compared to the consensus estimate of $238.46 million. As a group, equities analysts predict that Methode Electronics will post -0.95 earnings per share for the current year.

Institutional Inflows and Outflows

A number of large investors have recently made changes to their positions in MEI. 4D Advisors LLC bought a new position in Methode Electronics during the fourth quarter worth about $3,320,000. UBS Group AG raised its position in shares of Methode Electronics by 887.1% in the 3rd quarter. UBS Group AG now owns 476,974 shares of the electronics maker's stock valued at $3,601,000 after acquiring an additional 428,654 shares during the period. Charles Schwab Investment Management Inc. raised its position in shares of Methode Electronics by 31.6% in the 4th quarter. Charles Schwab Investment Management Inc. now owns 1,380,436 shares of the electronics maker's stock valued at $9,166,000 after acquiring an additional 331,618 shares during the period. Arrowstreet Capital Limited Partnership boosted its stake in Methode Electronics by 54.6% during the 3rd quarter. Arrowstreet Capital Limited Partnership now owns 832,344 shares of the electronics maker's stock worth $6,284,000 after acquiring an additional 293,843 shares during the last quarter. Finally, AQR Capital Management LLC boosted its stake in Methode Electronics by 29.7% during the 2nd quarter. AQR Capital Management LLC now owns 1,209,756 shares of the electronics maker's stock worth $11,505,000 after acquiring an additional 276,923 shares during the last quarter. Institutional investors and hedge funds own 95.49% of the company's stock.

Methode Electronics Company Profile

Methode Electronics, Inc is a Chicago-based global manufacturer of custom-engineered electronic and electromechanical components and assemblies. Founded in 1946, Methode specializes in providing solutions that integrate electrical connectors, sensors, switches, human-machine interface devices and power distribution modules. The company's product portfolio addresses complex application requirements across a broad range of end markets, including automotive, industrial, energy, healthcare and data/telecommunications.

In its automotive segment, Methode develops advanced connector systems, circuit protection devices and thermal management solutions for internal combustion, hybrid and electric vehicles.

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